2. Question from last lesson
Outline one positive contribution of LSO’s to the
economy (2 marks)
employment
Exports
Contribution to R&D
3. Todays lesson
Outcomes (What you need to know and be able to do)
•
Using evidence evaluate the negative contribution that
large-scale organisations make to the economy
4. Downsizing - involves workplace staff reductions,
with the elimination of jobs and positions.
Why are companies criticised for downsizing when they are only
trying to make money for their shareholders?
5.
6.
7. Outsourcing - is the practice of having non-core tasks
completed by another person or organisation.
Why are companies criticised for outsourcing when they are
only trying to make money for their shareholders?
8. Damage to the environment
LSOs are significant contributors to environmental damage
9. Exit question
Identify and discuss one negative contribution of LSO’s
(marks)
If a large-scale organisation decides to downsize by reducing its
workforce, the resulting large number of employees who are
retrenched may not be able to find other jobs, thus impacting on the
overall level of unemployment in the economy.These workers will no
longer have the same amount of disposable income as they had
when they were employed and their purchasing of goods and
services will therefore be severely reduced, which impacts on other
businesses.They may also place pressure on the government sector
of the economy because of an increase in applications for
unemployment benefits.
